Key points of investment
Next Wednesday (December 27), “Xueqi Electric”, a company listed on the main board of the Shenzhen Stock Exchange, asked for a quote.
Xueqi Electric (001387): The company is an ODM supplier in the field of large-volume household refrigerator manufacturing. It mainly provides products such as large refrigerators with a volume of 400L or more and commercial display cases for domestic and foreign brands. In 2020-2022, the company achieved operating income of 1,614 million yuan/2,072 million yuan/1,927 billion yuan, YOY in that order of -0.79%/28.41%/-6.98%, a compound annual growth rate of 5.82%; realized net profit of 0.04 billion yuan/82 million yuan/100 million yuan, YOY was -92.92%/1860.99%/22.67%, and the compound annual growth rate of net profit over three years was 19.40%. In the latest reporting period, from January to September 2023, the company achieved operating income of 1,694 billion yuan, a year-on-year change of 20.50%; net profit of the mother was 97 million yuan, a year-on-year change of 34.36%. According to the company's preliminary forecast, the net profit range for the full year of 2023 was about 140 million yuan to 170 million yuan, a change of 39.52% to 69.42% over the same period last year.
Investment highlights: 1. The company's products focus on the large capacity refrigerator segment and have now become the leading ODM industry leader. Since its establishment in 2011, the company has focused on the field of large-capacity refrigerators, and officially put into operation the first large refrigerator production line in 2012. After years of development, it has established long-term and stable cooperative relationships with many leading enterprises in the industry, such as Midea Group, Xiaomi Group, Meiling Group, Yunmi Technology, Electrolux, Hisense Group, and many well-known domestic and foreign brands. Up to now, the company has grown into an ODM leader in the large capacity refrigerator segment, with complete product specifications, and outstanding response speed and delivery capacity; according to Aowei Cloud Network, the company's product shipments rank first in China's refrigerator ODM market and the large capacity refrigerator market segment above 400L. 2. Embedded systems inject momentum into the development of the refrigerator industry, and the company plans to implement fund-raising projects to accelerate its layout. As consumers' preferences for refrigerators continue to lean towards large, multi-temperature zones and the rapid expansion of the overall cabinet market, built-in refrigerators that can reduce floor space, improve space utilization, and overall home decoration coordination may be expected to usher in good development opportunities. The company has now set up an experienced R&D team. Among them, General Manager Wang Manji, former director of Hefei Meiling Engineering Institute and Deputy General Manager, Technical Director Guo Jiabao, and ODM Director Zhang Bing, were engineers at Hefei Meishen Refrigerator Co., Ltd. With many years of industry experience in the refrigerator field, the company has now developed built-in refrigerators for home use, and has initially promoted and iterated on them. According to the prospectus, the company plans to promote continuous research and development of built-in refrigerator products through fundraising projects, and add about 850,000 units/year of built-in refrigerators and large-capacity refrigerators; in the future, it may be expected to expand to kitchen appliance brand customers through built-in refrigerator products.
Comparison of listed companies in the same industry: Taking into account business and product types, Xinbao Shares, Omar Electric, and Biyi Co., Ltd. were selected as comparable listed companies of Xueqi Electric; judging from the comparable companies mentioned above, the average revenue scale in 2022 was 7.679 billion yuan, with a gross sales margin of 21.74%; comparable PE-TTM (arithmetic average) was 14.11X; in comparison, the company's revenue scale and gross margin were lower than the average of comparable companies in the industry.
Risk warning: There is still a possibility that companies that have begun the inquiry process will not be able to go public due to special reasons; company content is mainly based on prospectus and other public information; there is a risk that the selection of listed companies in the same industry is inaccurate; there may be interpretation bias in content data selection, etc. The specific risks of listed companies are shown in the text.